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GT Advanced Technologies (GTAT -6.5%) heads south after announcing a $175M offering of...

GT Advanced Technologies (GTAT -6.5%) heads south after announcing a $175M offering of convertible senior notes due Oct. 1, 2017. The LED/solar equipment maker, which had $144M in debt on its balance sheet as of June 29, only says it will use the proceeds for "general corporate purposes." (PR)
Comments (6)
  • Bill Swiggart
    , contributor
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    Glad GTAT didn't issue more common stock given its current undervalued price. It will be interesting to see how GTAT spends the proceeds of this debt offering. Given the outsized success of their 2010 sapphire acquisition, and the continued promise offered by their Confluence Solar purchase one year ago, I'm betting on another acquisition where they can use their high value, proprietary crystalline manufacturing processes to transform an existing materials market. Possibly an existing maker of carborundum or carborundum making machines.
    24 Sep 2012, 10:22 AM Reply Like
  • sfshelton
    , contributor
    Comments (8) | Send Message
     
    I also bet they will do a M&A with the money to increase the value of the company even more. I think this is the worst of the news and it will pop back up to $7 soon after this. People should use this time to stock up on the stock because this is good news for them to have money for M&A. Now we just need to see which company or companies they will buy with it. Don't miss this boat people, this is another chance for you to get on and ride it back up! They are not going to come out right now and say they are doing a M&A with the money until they are ready to name the company or companies anywway so they just said it's for company use. Also I don't think they still owe that $144m, I think they paid down some of that $144m already but would have to check on it. Anyway if they didn't pay any down yet they just got better terms on what they owe now when they use this new offering to pay off that debt!
    24 Sep 2012, 01:25 PM Reply Like
  • Zach Tripp
    , contributor
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    I think it was the last conf. call they said they are looking for diversification. An announcement of a new purchase in the month or so would not surprise me.
    24 Sep 2012, 07:59 PM Reply Like
  • sfshelton
    , contributor
    Comments (8) | Send Message
     
    I agree Zach. All of us long term investors should lock up our shares so the shorts can't use them to short the stock. I have placed a sell order for all my shares at a much higher price than were it is today so the shorts can't use those shares. Anyone that is long the stock should do the same or the shorts can use them to keep the stock from going up. Lock up your shares investors.Of course when GTAT comes out that M&A news the shorts will have the cover anyway. I would not dare to short this stock right now. The stock has more upside than downside for sure.
    25 Sep 2012, 11:05 AM Reply Like
  • Zach Tripp
    , contributor
    Comments (416) | Send Message
     
    Here it is: http://tinyurl.com/cl7...

     

    "..GT expects that Twin Creeks’ unique Hyperion™ ion implanter technology will have broad application in the production of engineered substrates for power semiconductors and thin wafers for solar applications. In addition, GT expects to pursue the development of thin sapphire laminates for use in applications such as cover and touch screen devices. The Hyperion ion implanter has the potential to minimize, or in some cases eliminate, the need for wafering saws, which would significantly lower the cost of production..."

     

    Dovetails nicely to their conference call. $GTAT will be producing screens shortly....year or so.
    14 Nov 2012, 09:25 PM Reply Like
  • Bill Swiggart
    , contributor
    Comments (169) | Send Message
     
    Yes, in the UBS call just now, TG stated that GTAT planned to develop the Hyperion machine, which is protected by 30 issued, and 55 pending patents, for sale on a merchant basis. Apparently, this exfoliation technology is applicable to a variety of materials, and my guess is that their first sales will be to sapphire screen makers that compete with Gorilla glass. [Kudos to my friend JF, who called this acquisition one month ago BTW.]

     

    TG also stated his philosophy of acquiring technology assets and developing them in house--consistent with both the HiCZ and Twin Creek asset purchases. Obviously, for those with cash, this is a great time to be following that approach.
    15 Nov 2012, 11:06 AM Reply Like
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